Employee-owned companies outperform FTSE All-Share Index

Employee-owned companies outperformed those in the FTSE All-Share Index in the third quarter of 2009 according to the UK Employee Ownership Index (EOI) published by law firm Field Fisher Waterhouse.

Employee-owned companies’ share prices were up 27.6%, compared to FTSE All-Share companies’ share prices, which were up 21.3% over the quarter.

The EOI monitors the share price performance of listed companies, comparing the performance of FTSE All-Share companies with companies that are over 10% owned by employees.

Employee-owned companies have consistently outperformed the FTSE All-Share over the course of 2009, a trend that is also seen over the long term.

Over the last 17 years, employee-owned companies have outperformed FTSE All-Share companies each year by an average of 10%. Over successive three-year periods they have outperformed by 41% and over successive five-year periods by 78%.